David Greene always tells us that purchasing a property in Cali should be the first objective (ideally a househack), only go out of state if you exhausted being able to purchase a house in California first.  

Just plug in everything you can find and see what's what.Like @John Underwood, you need to use an objective eye on the place and make sure it makes sense as a STR.

I would not waste my money on a primary.Choice 1 seem to be unpopular but I'd like to be objective and ask in what scenario would this choice be appropriate? 

The number one objection a hard money lender is going to have with your stated problem is that your business plan got into trouble. 

Set your sight on a BIG target to reach a big objective.  

@Ton RatanaIf your object is to show income going forward, managing properties via an LLC is not the way to do it. if you expand it t manage for others, you'll need to be licensed, in my state.

I have no problem with that.Forgive me if I am mistaken, but it is my understanding that the responsibility  of a forum moderator  is to encourage  participants,  promote learning  and understanding,  to prevent inappropriate  or abusive content.In this case he fell short of those objectives  and I called him on it. 

Navigating these aspects thoughtfully will help you decide which rental strategy aligns best with your preferences and overall objectives.

I, again, apologize if our priorities have been misaligned from your perspective.I’m sorry we were unable to meet your objectives and wish you the absolute best in your future endeavors.

I can share my settings with you, and you can see how my settings are setup to try to meet my goals.My objective is to get about 60% occupancy with higher paying guests.